Ethereum (ETH) is one of the cryptocurrencies which has lost its value from the top. It is a mainstream cryptocurrency and considering this fact, it has lost over 90% of its value from the peak. That is why not many investors are willing to believe that there is underlying value in Ethereum (ETH). The problem with its fundaments has been plenty for Ethereum. However, the question which needs to be asked is whether the Ethereum (ETH) fundamentals are finally turning around or not.

Are the fundamentals of Ethereum (ETH) improving?

The main fear for Ethereum (ETH) is that the companies that are launching the ICOs on the Ethereum (ETH) platform might sell their Ethereum (ETH) holdings. The problem is that in the better part of this year, most of the ICOs used the Ethereum (ETH) blockchain in order to sell their tokens. That is why; they are holding a significant amount of ETH tokens. If the bulk of the selling starts, the price might move down even more. Such ICOs are already in trouble, it is expected that at some point, the stakeholders will start selling the ETH tokens. However, an analyst from HASH CIB, Marat Garafutdinov has a different opinion.

According to the analyst, most of the companies that launch the ICOs are still holding the ETH tokens. Therefore, the fear is that there will be a massive sell-off or the ICOs selling massive amounts is actually false. This, however, is not the only problem which is plaguing Ethereum (ETH).

Another problem is that there is increased competition from the other blockchains which offer similar features. A prime among them is Tron (TRX). That is why the Ethereum (ETH) blockchain is not able to grow at the same pace. This is one of the main reasons why the value is eroding as well. Unless and until, the growth pace picks up and Ethereum (ETH) indicates once again that it is going to continue to be the most dominant blockchain for ICOs as well as smart contracts, the value of Ethereum (ETH) might not improve.

On the other hand, the blockchain space as a whole is growing at a rapid pace. Applications of the blockchain technology as well as the uses are increasing on a day-to-day basis. Many of these applications actually use the Ethereum (ETH) blockchain. This clearly indicates that sooner than later, the fundamentals will start turning around. At the same point in time, companies all over the world are trying to utilize the smart contracts in order to make their systems efficient. This again will benefit Ethereum (ETH).

While, the fundamentals have not yet turned around significantly but in the very near future, they might start turning around for Ethereum (ETH). Considering, it has lost more than 90% of the value from the top, it might actually recover shortly.

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